What are your clients doing with IR35 reform?

[Paralytic]

I know that all large organisations got their phishing letters for IR35 recently so expect this has sharpened minds and left people in no doubt as to HMRC's approach.

Can you elaborate on this?

[jamesbrown]

That argument might have held water if it were not for the fact that the same organisation had already assessed some time ago that my current contract and working practises were not subject to the IR35 rules.

Why would the client want to give you a false inside assessment? Surely the client would be better to mandate that you used an umbrella? What reasons are they going to give? "Dear jtb, here is your SDS, which says that you're inside for reasons XYZ, but we all know the truth, wink, wink." Remember that IR35 status can change over time as the WP change, so their earlier assessment, when they we not required to do so by law, may not reflect other periods in the past. Either way, the reality is what it is. But it would be wrong to think that a status change without a WP change was insignificant. The whole basis for IR35 is to establish a hypothetical contract based on the WP and other garnish (like the actual contract wording).

[ComplianceLady]

Can you elaborate on this?

All large orgs have a HMRC 'advisor', a letter came from them recently asking for details on IR35 prep, name of contact, numbers of contractors that type of information.

[JohntheBike]

Why would the client want to give you a false inside assessment? Surely the client would be better to mandate that you used an umbrella? What reasons are they going to give? "Dear jtb, here is your SDS, which says that you're inside for reasons XYZ, but we all know the truth, wink, wink." Remember that IR35 status can change over time as the WP change, so their earlier assessment, when they we not required to do so by law, may not reflect other periods in the past. Either way, the reality is what it is. But it would be wrong to think that a status change without a WP change was insignificant. The whole basis for IR35 is to establish a hypothetical contract based on the WP and other garnish (like the actual contract wording).

Surely the client would be better to mandate that you used an umbrella?

possibly, and I'd have to examine the T&C before I accepted. However, I'm more concerned about my historical position and based on what Markel Tax have said, as long as I continue paying the insurance, then they would represent me for any historical challenge by HMRC. I just need to decide how long after I close MyCo down, should I continue paying the insurance to ensure that I'm covered.

[jamesbrown]

possibly, and I'd have to examine the T&C before I accepted. However, I'm more concerned about my historical position and based on what Markel Tax have said, as long as I continue paying the insurance, then they would represent me for any historical challenge by HMRC. I just need to decide how long after I close MyCo down, should I continue paying the insurance to ensure that I'm covered.

I don't think the artist formerly known as AbbeyTax does tax loss insurance that is written on a "claims made" basis(?) I think it's for a specific contract/period. So you shouldn't need to maintain it. However, they used to be tied up with IPSE, so it may rely on IPSE+, which you may need to maintain as a precondition. Check the T&Cs before you waste money.

[BABABlackSheep]

It's a rumour - who knows if it will happen.

I would hand my notice in within the hour of the announcement...

If you knew it was coming would you hand in before?

[cojak]

No. These things change or get delayed for one reason or another. It gives you time to look for another contract before pulling the plug on this one.